Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our User Agreement and Privacy Policy.

Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. If you continue browsing the site, you agree to the use of cookies on this website. See our Privacy Policy and User Agreement for details.

First Half 2009 Results

1.
FIRST HALF 2009 RESULTS

2.
Investor Relations – First Half 2009 Results – 06.08.09Disclaimer Veolia Environnement is a corporation listed on the NYSE and Euronext Paris. This document contains "forward-looking statements" within the meaning of the provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from the forward-looking statements as a result of a number of risks and uncertainties, many of which are outside our control, including but not limited to: the risk of suffering reduced profits or losses as a result of intense competition, the risks associated with conducting business in some countries outside of Western Europe, the United States and Canada, the risk that changes in energy prices and taxes may reduce Veolia Environnements profits, the risk that we may make investments in projects without being able to obtain the required approvals for the project, the risk that governmental authorities could terminate or modify some of Veolia Environnements contracts, the risk that our long-term contracts may limit our capacity to quickly and effectively react to general economic changes affecting our performance under those contracts, the risk that acquisitions may not provide the benefits that Veolia Environnement hopes to achieve, the risk that Veolia Environnements compliance with environmental laws may become more costly in the future, the risk that currency exchange rate fluctuations may negatively affect Veolia Environnements financial results and the price of its shares, the risk that Veolia Environnement may incur environmental liability in connection with its past, present and future operations, as well as the risks described in the documents Veolia Environnement has filed with the U.S. Securities and Exchange Commission. Veolia Environnement does not undertake, nor does it have, any obligation to provide updates or to revise any forward-looking statements. Investors and security holders may obtain a free copy of documents filed by Veolia Environnement with the U.S. Securities and Exchange Commission from Veolia Environnement. This document contains "non-GAAP financial measures" within the meaning of Regulation G adopted by the U.S. Securities and Exchange Commission under the U.S. Sarbanes-Oxley Act of 2002. These "non-GAAP financial measures" are being communicated and made public in accordance with the exemption provided by Rule 100(c) of Regulation G. This document contains certain information relating to the valuation of certain of Veolia Environnement’s recently announced or completed acquisitions. In some cases, the valuation is expressed as a multiple of EBITDA of the acquired business, based on the financial information provided to Veolia Environnement as part of the acquisition process. Such multiples do not imply any prediction as to the actual levels of EBITDA that the acquired businesses are likely to achieve. Actual EBITDA may be adversely affected by numerous factors, including those described under ―Forward-Looking Statements‖ above. 2

3.
Investor Relations – First Half 2009 Results – 06.08.09Table of Contents Key events First half 2009 results 2009 objectives Continued development of the Group 3

5.
Investor Relations – First Half 2009 Results – 06.08.09 First half 2009 key figures€m H1 2008  current  constant H1 2009 Restated (1) FX rates FX ratesRevenue 17,565.7 17,426.9 -0.8% +0.2%Operating cash flow 2,127.8 1,977.5 -7.1% -4.9%Recurring operating income 1,287.2 1,000.8 -22.2% -19.1%Operating income 1,292.2 1,000.8 -22.5% -19.4%Net recurring income attributable to equity 497.9 276.5 -44.5% -holders of the parentNet income attributable to equity holders of 500.5 220.3 -56.0% -the parentNet financial debt 16,332 16,827 (1) To ensure the comparability of the periods, the accounts at June 30, 2008 have been restated: • by the amount of income from the disposals of Clemessy and Crystal in the Energy division in December 2008, according to IFRS 5 which are presented in the income statement in the line item ―net income from discontinued operations‖; • by the reclassification into discontinued operations of the Freight operations in the Transport Division and of the Waste-to-Energy operations in the Waste Division in the United States 5

6.
Investor Relations – First Half 2009 Results – 06.08.09Improvement in the first half 2009 as compared withthe second half 2008 H2 2008 H1 2009 Var. Restated(3)Operating cash flow €1,976m €1,978m Ns margin 10.8% 11.3% +50bpNet recurring income attributable to equity €175m €276m +58.0%holders of the parentOperating cash flow(1) – Net Investments (2) €303m €843m (1) Including operating cash flow from discontinued operations (2) Net Investments = Gross Investments – (disposals + repayment of operating financial assets + capital increase subscribed by minorities) (3) To ensure the comparability of the periods, the second half 2008 accounts have been restated: • by the amount of income from the disposals of Clemessy and Crystal in the Energy division in December 2008, according to IFRS 5 which are presented in the income statement in the line item ―net income from discontinued operations‖; • by the reclassification into discontinued operations of the Freight operations in the Transport Division and of the Waste-to-Energy operations in the Waste Division in the United States 6

8.
Investor Relations – First Half 2009 Results – 06.08.09 Revenue€m 17,566 (178) 219 (180) 17,427 H1 2008 Internal External FX impact H1 2009 restated (1) growth growth -1.0% +1.2% -1.0% -0.8%(1) To ensure the comparability of the periods, the accounts at June 30, 2008 have been restated: • by the amount of income from the disposals of Clemessy and Crystal in the Energy division in December 2008, according to IFRS 5 which are presented in the income statement in the line item ―net income from discontinued operations‖; • by the reclassification into discontinued operations of the Freight operations in the Transport Division and of the Waste-to-Energy operations in the Waste Division in the United States 8

9.
Investor Relations – First Half 2009 Results – 06.08.09 Breakdown of revenue by geographic zone€m  current  constant Exc. Scope 17,566 17,427 FX rates FX rates and FX ■ France -4.4% -4.4% -5.3% ■ Europe ex France -3.8% +1.8% +0.7% 7,290 6,966 ■ North America +12.3% -1.8% -3.2% ■ Asia/Pacific +1.8% +2.5% +0.1% ■ Rest of the world +21.1% +21.8% +19.0% VE Group -0.8% +0.2% -1.0% 6,455 6,211 1,435 1,611 1,300 1,324 1,086 1,315 H1 2008 H1 2009 restated (1)(1) To ensure the comparability of the periods, the accounts at June 30, 2008 have been restated: • by the amount of income from the disposals of Clemessy and Crystal in the Energy division in December 2008, according to IFRS 5 which are presented in the income statement in the line item ―net income from discontinued operations‖; • by the reclassification into discontinued operations of the Freight operations in the Transport Division and of the Waste-to-Energy operations in the Waste Division in the United States 9

10.
Investor Relations – First Half 2009 Results – 06.08.09 Breakdown of revenue by division€m  current  constant Exc. Scope 17,566 17,427 FX rates FX rates and FX ■ Water +4.1% +3.7% +3.0% ■ Waste -10.2% -8.9% -10.3% 5,988 6,235 ■ Energy services +1.1% +3.7% +2.3% ■ Transportation +3.0% +4.4% +2.4% VE Group -0.8% +0.2% -1.0% 5,015 4,502 3,676 3,717 2,887 2,973 H1 2008 H1 2009 restated (1)(1) To ensure the comparability of the periods, the accounts at June 30, 2008 have been restated: • by the amount of income from the disposals of Clemessy and Crystal in the Energy division in December 2008, according to IFRS 5 which are presented in the income statement in the line item ―net income from discontinued operations‖; • by the reclassification into discontinued operations of the Freight operations in the Transport Division and of the Waste-to-Energy operations in the Waste Division in the United States 10

11.
Investor Relations – First Half 2009 Results – 06.08.09Revenue: Veolia Water France: internal growth declined 0.2% despite indexing, because of a small contraction in volumes (-1%) and the First half revenue (€m) marked slowdown in engineering works businesses 5,988 +4.1% 6,235 Outside France, strong internal growth of 4.8% at constant scope and exchange rates 3,895 +3.0% 4,013 Operations — North America (+9.5% at constant scope and exchange rates) due to the start-up of the new Milwaukee contract and the engineering works Works and businesses 2,093 +6.2% 2,222 Engineering & Construction — Asia (+13.8% constant scope and exchange rates) due in particular to industrial operations in Korea H1 08 H1 09 Veolia Water Solutions and Technologies: internal growth of 12.7% in H1 despite a flattening out in the second quarter of 2009 11

16.
Investor Relations – First Half 2009 Results – 06.08.09 Operating cash flow (1) €m H1 2008  current  constant H1 2009 Restated (2) FX rates FX rates Water 904 910 +0.7% +2.7% Waste 703 540 -23.2% -22.4% Energy services 424 414 -2.2% +2.4% Transportation 142 160 +12.4% +14.5% Other (45) (46) - Total Group 2,128 1,978 -7.1% -4.9%(1) Operating cash flow = cash flow from continued operations before tax and financial items(2) To ensure the comparability of the periods, the accounts at June 30, 2008 have been restated: • by the amount of income from the disposals of Clemessy and Crystal in the Energy division in December 2008, according to IFRS 5 which are presented in the income statement in the line item ―net income from discontinued operations‖; • by the reclassification into discontinued operations of the Freight operations in the Transport Division and of the Waste-to-Energy operations in the Waste Division in the United States 16

17.
Investor Relations – First Half 2009 Results – 06.08.09 Operating cash flow margin Operating cash flow margins FY 2008 H1 2008 H1 2009 €m margin margin margin restated (1) restated (1) Water 14.5% 15.1% 14.6% Waste 13.4% 14.0% 12.0% Energy services 10.1% 11.5% 11.1% Transportation 4.9% 4.9% 5.4% Others - - - Total Group 11.4% 12.1% 11.3%(1) To ensure the comparability of the periods, the accounts at June 30, 2008 and December 30, 2008 have been restated: • by the amount of income from the disposals of Clemessy and Crystal in the Energy division in December 2008, according to IFRS 5 which are presented in the income statement in the line item ―net income from discontinued operations‖; • by the reclassification into discontinued operations of the Freight operations in the Transport Division and of the Waste-to-Energy operations in the Waste Division in the United States 17

20.
Investor Relations – First Half 2009 Results – 06.08.09 Recurring operating income by division €m H1 2008  current  constant H1 2009 restated (1) FX rates FX rates Water 597 597 -0.1% +3.4% Waste 397 134 -66.2% -65.3% Energy services 284 248 -12.5% -7.2% Transportation 62 78 +25.0% +26.5% Other (53) (56) - - Recurring operating income 1,287 1,001 -22.2% -19.1% Non-recurring items 5 - Operating income 1,292 1,001 -22.5% -19.4%(1) To ensure the comparability of the periods, the accounts at June 30, 2008 have been restated: • by the amount of income from the disposals of Clemessy and Crystal in the Energy division in December 2008, according to IFRS 5 which are presented in the income statement in the line item ―net income from discontinued operations‖; • by the reclassification into discontinued operations of the Freight operations in the Transport Division and of the Waste-to-Energy operations in the Waste Division in the United States 20

21.
Investor Relations – First Half 2009 Results – 06.08.09 From operating income to net income H1 2008 restated (1) H1 2009€m Recurring Non- Total Recurring Non- Total recurring recurringOperating income 1,287 5 1,292 1,001 - 1,001Cost of net financial debt (423) - (423) (379) - (379)Other financial income & expenses (6) - (6) (29) - (29)Corporate tax expense (222) - (222) (197) - (197)Equity in net income of affiliates 9 - 9 6 - 6Net income from discontinued - 1 1 - (56) (56)operationsNet income attributable to minority (147) (3) (150) (126) - (126)interestsNet income - attributable to equity holders of the parent 498 3 501 276 (56) 220 (1) To ensure the comparability of the periods, the accounts at June 30, 2008 have been restated: • by the amount of income from the disposals of Clemessy and Crystal in the Energy division in December 2008, according to IFRS 5 which are presented in the income statement in the line item ―net income from discontinued operations‖; • by the reclassification into discontinued operations of the Freight operations in the Transport Division and of the Waste-to-Energy operations in the Waste Division in the United States 21

22.
Investor Relations – First Half 2009 Results – 06.08.09 Cost of borrowing H1 2008 H1 2009 / €m H1 2009 Restated (1) H1 2008 Cost of net financial debt 423 379 - 44 of which impact of changes in interest rates - 68 of which impact of change in average debt 26 Cost of borrowing (2) at 4.47% as compared with 5.41% at June 30, 2008(1) To ensure the comparability of the periods, the accounts at June 30, 2008 have been restated: • by the amount of income from the disposals of Clemessy and Crystal in the Energy division in December 2008, according to IFRS 5 which are presented in the income statement in the line item ―net income from discontinued operations‖; • by the reclassification into discontinued operations of the Freight operations in the Transport Division and of the Waste-to-Energy operations in the Waste Division in the United States(2) Adjusted for the impact of the expected unwinding of transactions on derivatives, the cost of borrowing stood at 4.47% at June 30, 2009 versus 5.68% at June 30, 2008 22

43.
Investor Relations – First Half 2009 Results – 06.08.09 Appendix 2: Recurring operating income margin Recurring operating income margins H1 2008 H1 2008 H1 2009 €m H1 2009 margin restated (1) margin restated Water 597 597 10.0% 9.6% Waste 397 134 7.9% 3.0% Energy services 284 248 7.7% 6.7% Transportation 62 78 2.2% 2.6% Other (53) (56) - - Total Group 1,287 1,001 7.3% 5.7%(1) To ensure the comparability of the periods, the accounts at June 30, 2008 have been restated: • by the amount of income from the disposals of Clemessy and Crystal in the Energy division in December 2008, according to IFRS 5 which are presented in the income statement in the line item ―net income from discontinued operations‖; • by the reclassification into discontinued operations of the Freight operations in the Transport Division and of the Waste-to-Energy operations in the Waste Division in the United States 43